Prior Year Loss Not on 8582 or Unreimbursed Expenses - This question corresponds to Schedule E line 27 and needs to be answered Yes when the return includes any of the following items from a partnership or S corporation reported on Schedule K-1:
- Unreimbursed partnership expenses.
- An unallowed loss in a prior year due to at-risk or basis limitations.
- An unallowed passive loss in a prior year that was not reported on Form 8582.
See the Schedule E instructions here for more information about these items.
Made Payments that would Require Filing Form(s) 1099? - Payments of rents, fees, and nonemployee compensation in the amount of $600 or more to a single payee are generally required to be reported on Form 1099-MISC or 1099-NEC as appropriate. Answer YES to this question if the taxpayer made any payments requiring them to file a Form 1099 for any payee.
Did You or Will You File All Required Forms 1099? - If the previous question is answered YES, this question also needs to be answered.
IRC Section 469(c)(7)(A) Election - If the taxpayer is making an election to combine all rental real estate interests into one activity per Section 469(c)(7)(A), answer YES. A statement will need to be included with the return indicating this election. See the section "Grouping Activities" in this KB article for information about the statement. See Revenue Procedure 2011-34 for information about the election.
Note: This is a guide for entering certain Rents & Royalty Income into Schedule E. It is not intended as tax advice.